“The UK already has one of the world’s most flexible, adaptable labour markets, making it one of our strengths and it stands up very well in international comparisons. However, we recognise that there is room for improvement which balances the needs of business while ensuring that the necessary employment protections are upheld.

“We are already implementing a radical package of reforms to the employment tribunal system and increasing the qualifying period for unfair dismissal from one to two years. These are all measures that will help improve the way businesses hire, manage and end a working relationship.

“But we also recognise that not all jobs work out for both parties - the staff member doesn’t quite fit or simply the relationship has irretrievably broken down. And for micros in particular, who often don’t have legal or HR teams, the process to let a staff member go can be a daunting and complicated process.

“We want to give businesses the confidence to hire new staff and make sure when a dismissal needs to be made, they aren’t tied up in red tape. This is an effort to see how extensive the problem is and shed some light on the desire for a change to the rules.”

Employment Law Review

The Government also published the annual update on the Employment Law Review.

This includes an update to the Employer’s Charter, which now includes pointers on sickness absence and recruitment.

The Charter aims to counter the misconception that employment protections are all one-way - towards the employee. It gives greater clarity to managers on what they can already do to deal with issues in the workplaces, on subjects such as performance, sick leave, maternity leave, requests for flexible working and redundancy.